UPDATE: A former nonprofit executive director has reached a plea deal after being accused of embezzling more than $136,000 from her organization over nearly five years. Cheri Gerken, 53, from Moorhead, will plead guilty to a reduced charge following negotiations with Cass County prosecutors, marking a significant development in this ongoing case.
Gerken’s plea deal, confirmed on November 5, 2024, includes a 60-day sentence of electronic home monitoring, two years of supervised probation, 80 hours of community service, and a restitution payment of $3,179.22 to Presentation Partners in Housing, a nonprofit organization dedicated to assisting the homeless. Initially charged with Class A felony theft of over $50,000, which could have led to a maximum of 20 years in prison, Gerken will now admit to a lesser Class C felony theft charge involving amounts between $1,000 and $10,000, with a maximum sentence of five years.
The investigation into Gerken began in November 2024 after the president of Presentation Partners in Housing alerted the Fargo police about suspicious charges made on her company credit card. An accountant’s analysis revealed that between January 2019 and November 2023, Gerken charged a staggering $267,280 to the card. Of that amount, only $42,000 was related to legitimate business expenses, while $88,698 had unclear purposes, and the remaining $136,554 was deemed personal.
After the findings were disclosed, Gerken was terminated from her position. Following her dismissal, she penned a six-page handwritten letter to the nonprofit’s board, expressing remorse and admitting to her financial misconduct. In her letter, Gerken stated that the financial difficulties following her divorce led her to misuse the organization’s funds, initially intending to repay the account but ultimately unable to do so. She filed for Chapter 7 bankruptcy in May 2024.
As part of the plea agreement, Gerken has waived her right to appear in court at her next hearing, set for November 20. This developing story highlights the ongoing challenges faced by nonprofits in managing finances and ensuring accountability.
Stay tuned for more updates as this case progresses and further details emerge.
